Slides
Page 1
THIRD QUARTER 2025 REVIEW November 6, 2025
Page 2
REGARDING FORWARD - LOOKING STATEMENTS Statements contained in this presentation and certain other written or oral statements made from time to time by Flowers Foods, Inc. (the “company”, “Flowers Foods”, “Flowers”, “us”, “we”, or “our”) and its representatives that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to current expectations regarding our business and our future financial condition and results of operations and are often identified by the use of words and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” “would,” “is likely to,” “is expected to” or “will continue,” or the negative of these terms or other comparable terminology. These forward-looking statements are based upon assumptions we believe are reasonable. Forward-looking statements are based on current information and are subject to risks and uncertainties that could cause our actual results to differ materially from those projected. Certain factors that may cause actual results, performance, liquidity, and achievements to differ materially from those projected are discussed in our Annual Report on Form 10-K for the year ended December 28, 2024 (the “Form 10-K”) and our Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and may include, but are not limited to, (a) unexpected changes in any of the following: (1) general economic and business conditions; (2) the competitive setting in which we operate, including advertising or promotional strategies by us or our competitors, as well as changes in consumer demand; (3) interest rates and other terms available to us on our borrowings; (4) supply chain conditions and any related impact on energy and raw materials costs and availability and hedging counter-party risks; (5) relationships with or increased costs related to our employees and third-party service providers; (6) laws and regulations (including environmental and health-related issues and the impacts of tariffs, including retaliatory tariffs); and (7) accounting standards or tax rates in the markets in which we operate, (b) the loss or financial instability of any significant customer(s), including as a result of product recalls or safety concerns related to our products, (c) changes in consumer behavior, trends and preferences, including health and whole grain trends and consumer buying habits, the movement toward less expensive store branded products, and the continued reduction of purchases in the fresh packaged bread category, (d) the level of success we achieve in developing and introducing new products and entering new markets, (e) our ability to implement new technology and customer requirements as required, (f) our ability to operate existing, and any new, manufacturing lines according to schedule, (g) our ability to implement and achieve our corporate responsibility goals in accordance with regulatory requirements and the expectations of our stakeholders, suppliers, and customers; (h) our ability to execute our business strategies which may involve, among other things, (1) the ability to realize the intended benefits of completed, planned or contemplated acquisitions, dispositions or joint ventures, such as the acquisition of Simple Mills, (2) the deployment of new systems (e.g., our enterprise resource planning ("ERP") system), distribution channels and technology, and (3) an enhanced organizational structure (e.g., our sales and supply chain reorganization), (i) consolidation within the baking industry and related industries, (j) changes in pricing, customer and consumer reaction to pricing actions (including decreased volumes), and the pricing environment among competitors within the industry, (k) our ability to adjust pricing to offset, or partially offset, inflationary pressure or tariffs (including retaliatory tariffs) on the cost of our products, including ingredient and packaging costs; (l) disruptions in our direct-store-delivery distribution model, including litigation or an adverse ruling by a court or regulatory or governmental body that could affect the independent contractor classifications of the independent distributor partners (“IDPs”), and changes to our direct-store-delivery distribution model in California, (m) increasing legal complexity and legal proceedings that we are or may become subject to, (n) labor shortages and turnover or increases in employee and employee-related costs, (o) the credit, business, and legal risks associated with IDPs and customers, which operate in the highly competitive retail food and foodservice industries, (p) any business disruptions due to political instability, pandemics, armed hostilities, incidents of terrorism, natural disasters, labor strikes or work stoppages, technological breakdowns, product contamination, product recalls or safety concerns related to our products, or the responses to or repercussions from any of these or similar events or conditions and our ability to insure against such events, (q) the failure of our information technology systems to perform adequately, including any interruptions, intrusions, cyber-attacks or security breaches of such systems or risks associated with the implementation of the upgrade of our ERP system; and (r) the potential impact of climate change on the company, including physical and transition risks, our availability or restriction of resources, higher regulatory and compliance costs, reputational risks, and our availability of capital on attractive terms. The foregoing list of important factors does not include all such factors, nor does it necessarily present them in order of importance. In addition, you should consult other disclosures made by the company (such as in our other filings with the SEC or in company press releases) for other factors that may cause actual results to differ materially from those projected by the company. Refer to Part I, Item 1A., Risk Factors, of our Form 10-K, Part II, Item 1A., Risk Factors, of the Form 10-Q for the quarter ended October 4, 2025 and subsequent filings with the SEC for additional information regarding factors that could affect the company’s results of operations, financial condition and liquidity. We caution you not to place undue reliance on forward-looking statements, as they speak only as of the date made and are inherently uncertain. The company undertakes no obligation to publicly revise or update such statements, except as required by law. You are advised, however, to consult any further public disclosures by the company (such as in our filings with the SEC or in company press releases) on related subjects. 2
Page 3
KEY MESSAGES • Portfolio transformation efforts driving strong relative performance — all leading brands either gained or held unit share • Persistent challenging consumer environment pressured categories, particularly traditional loaf • Announced exciting slate of on - trend innovation , including a new higher - protein loaf from our Nature’s Own Life lineup and DKB Supreme Sourdough • Narrowed guidance range to reflect greater certainty as we enter the fourth quarter 3
Page 4
Q3 2025 FINANCIAL REVIEW NET SALES $1.227B +3.0% v PY • Price/Mix - 2.3% 1 • Volume - 0.6% 2 • Acquisition +5.9% CASH FLOWS — YTD’25 Cash from Ops $320.8M Capex $80.3M Dividends $157.0M Acquisition 5 $791.9M NET INCOME $39.5M - 39.2% v PY ADJ. EBITDA 3 $118.1M - 11.4% v PY • Impacted by lower gross margin 4 and higher adjusted SD& A 4 • 9.6 % of sales, down 160 bps GAAP DILUTED EPS $0.19 - $0.12 v PY ADJ. DILUTED EPS 6 $0.23 - $0.10 v PY • Lower adjusted EBITDA 4 • Increased net interest expense (1) Calculated as (current year period units X change in price per unit) / prior year period net sales $ (2) Calculated as (prior year period price per unit X change in units) / prior year period net sales $ (3) Earnings before interest, taxes, depreciation & amortization (EBITDA), adjusted for matters affecting comparability. See non - GAA P reconciliations at the end of this slide presentation. Earnings are net income. EBITDA and Adjusted EBITDA are reconciled to net income. (4) Adjusted for matters affecting comparability. (5) Net of cash acquired. (6) Earnings per share (EPS), adjusted for matters affecting comparability. See non - GAAP reconciliations at the end of this slide presentatio n. 4
Page 5
Q3 2025 NET SALES HIGHLIGHTS Net sales increased 3.0% due to the Simple Mills acquisition contribution, partly offset by softer volumes and negative price/mix Branded Retail net sales increased 6.9% due to the acquisition contribution, partly offset by volume declines and unfavorable price/mix Other net sales decreased 3.8% due to unfavorable price/mix, partially offset by increased volume for non - retail items NET SALES CHANGE BY SALES CLASS (MILLIONS) 1,191 52 - 16 $1,227 Q3'24 Branded Retail Other Q3'25 1,100 1,120 1,140 1,160 1,180 1,200 1,220 1,240 1,260 1,280 1,300 +3.0% INCREASE NET SALES BRIDGE 5 Price/Mix - 1.1% - 1.3% +9.3% +6.9% Branded Retail - 4.1% 0.3% ---- - 3.8% - 2.3% - 0.6% +5.9% +3.0% Other Total 1 Volume Total (1) Total column reflects consolidated results and is not the sum of Branded Retail and Other columns Acquisition
Page 6
Q3 2025 HIGHLIGHTS ADJUSTED EBITDA 1 (MILLIONS) $133 $118 $50 $60 $70 $80 $90 $100 $110 $120 $130 $140 Q3'24 Q3'25 11.2% Margin 9.6% Margin - 11.4 % CHANGE (1) Earnings before interest, taxes, depreciation & amortization, adjusted for matters affecting comparability. See non - GAAP reconci liations at the end of this slide presentation . 6 Net income decreased 39.2% to $39.5 million, primarily due to lower operating income and higher net interest expense Adjusted EBITDA 1 decreased primarily due to a challenging consumer environment, partially offset by the acquisition contribution
Page 7
FISCAL 2025 GUIDANCE (Provided November 6, 2025) Net Sales $5.033 to $5.083B Adj. dil. EPS 2 (1) No reconciliation of the forecasted range for adjusted EBITDA to net income for the 53 - week Fiscal 2025 is included in this pres entation because the company is unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable efforts. In addition, th e company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the company is unable t o a ddress the probable significance of the unavailable information, which could be material to future results. (2) Earnings per share (EPS), adjusted for matters affecting comparability. See non - GAAP reconciliations at the end of this slide pr esentation. (3) Includes $3 - 5 million related to ERP upgrade (4) Tariff range assumes $11 - 14 million for Flowers standalone and $2 - 4 million for Simple Mills Fiscal 2025 Considerations • 53 rd week expected to contribute $70 - 80M net sales, $5 - 7M adj. EBITDA, and approx. $0.02 adj EPS • Expected tariff impact decreased to $13 - 18M 4 from $17 - 22M • Consumer resiliency • Promotional environment • Simple Mills integration • Ability to mitigate cost inflation • Timing and effectiveness of cost savings initiatives • ERP rollout • California distribution transition 7 Adj. EBITDA 1 $221 to $223M $5.254 to $ 5.306B FLOWERS STANDALONE SIMPLE MILLS (PARTIAL YEAR) FLOWERS TOTAL $485 to $499M $30 to $33M $515 to $532M $1.10 to $1.15 ($0.08) to ( $0.07) $1.02 to $1.08 OTHER Depreciation & amortization $168 – $172M Effective tax rate APPROX. 24.5% Net interest expense $58 - $62M Diluted shares outstanding APPROX. 212.3M Capital expenditures $120 – $130M 3
Page 8
FY'24 Adj EBITDA D&A Net Int Exp Inc Tax Exp Simple Mills FY'25 GUIDANCE DRIVERS 8 KEY CONSIDERATIONS + Carryover of new business wins, and pricing and efficiency actions + Innovation + 53 rd week – Category declines – Tariffs – Competitive activity – Promotional activity – Strategic investments – Higher interest rates – Lower interest income – Lower tax rate y/y – Higher capital employed from ERP Data is not indicative of actual expected impact. Graph is intended for directional purposes only. $1.02 – $1.08 – Higher D&A from acquisition intangibles – Increased interest expense from acquisition - related debt $1.28
Page 9
LONG - TERM GROWTH TARGET SCORECARD LT Targets1 CAGR1 FY’201 FY’21 FY’22 FY’23 FY’24 FY’251,2 Net Sales 1-2% 6.4% 2.5% 5.2% 5.4% 4.4% 3.5% Adj EBITDA 4-6% 23.4% 7.8% 5.9% 4.4% 5.0% 2.6%3 Adj dil. EPS 7-9% 36.5% 13.7% 9.8% 5.7% 5.9% 2.7% (1) Off FY’19 base; FY’20 and FY’25 are 53 - week years (2) Implied return using FY’25 guidance midpoint for standalone Flowers, excluding Simple Mills impact; FY’25 is a 53 - week year (3) No reconciliation of the forecasted range for adjusted EBITDA to net income for the 53 - week Fiscal 2025 is included in this pres entation because the company is unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable efforts. In addition, the company believes such reconciliati on would imply a degree of precision that would be confusing or misleading to investors. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be m ate rial to future results. 9
Page 10
PRIVATE LABEL UNIT SHARE 10 CHANGE IN PRIVATE LABEL UNIT SHARE (Y/Y) Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current data 0.7 0.5 - 0.2 - 0.3 0.1 0.2 - 0.3 - 0.3 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25
Page 11
VOLUME TRENDS 11 BRANDED RETAIL TOTAL COMPANY Source: Flowers internal data Volume data excludes impact of acquisitions during first year after acquisition date OTHER FLO Volume % Change (Y/Y) - 2.4% - 2.5% - 2.7% - 2.4% - 0.6% 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 - 4.2% - 3.2% - 3.7% - 3.7% 0.3% 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25 • Branded retail impacted by continued weakness in the fresh packaged bread category and increased hurricane - driven demand in the prior year quarter • Other benefitted from growth in contract manufacturing and vending, net of foodservice volume declines - 0.6% - 2.0% - 1.9% - 1.3% - 1.3% 3Q'24 4Q'24 1Q'25 2Q'25 3Q'25
Page 12
BRANDED VS STORE BRAND MARKET SHARE Long - term trend of branded share gains interrupted by inflationary pressure on consumers 12 76.2 77.1 76.7 75.2 74.4 73.8 23.8 22.8 23.2 24.8 25.5 26.1 17.00 18.00 19.00 20.00 21.00 22.00 23.00 24.00 25.00 26.00 27.00 70.00 71.00 72.00 73.00 74.00 75.00 76.00 77.00 78.00 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 L52 WE 10-05-25 Branded Dollar Share Store Branded Dollar Share Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current data
Page 13
FLOWERS MARKET SHARE 16.0 16.9 16.8 16.8 15.9 16.7 16.5 16.7 5.9 5.9 5.9 5.8 5.4 5.8 6.3 6.0 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 FLO Bread Dollar Share FLO Cake Dollar Share Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current data 13
Page 14
FLOWERS FRESH PACKAGED BREADS 2.9% 4.3% 1.9% 0.4% - 1.6% - 2.3% - 3.2% - 2.9% - 1.8% 0.2% 1.4% 0.7% - 1.3% - 2.5% - 2.9% - 1.8% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Dollar Sales % Chg Unit Sales % Chg 14 Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current data
Page 15
FLOWERS COMMERCIAL CAKE - 1.6% - 3.3% - 7.0% - 5.2% - 10.0% - 6.2% 3.5% 1.0% - 1.7% - 2.6% - 6.7% - 4.3% - 7.6% - 5.1% 4.1% 1.1% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Dollar Sales % Chg Unit Sales % Chg 15 Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current data
Page 16
ORGANIC CATEGORY SALES $321.1 $311.5 $316.1 $321.3 $338.0 $347.6 $703.9 $766.0 $848.3 $925.6 $963.9 $983.4 68.7 71.1 72.9 74.2 74.0 73.9 20.0 30.0 40.0 50.0 60.0 70.0 80.0 -$20.0 $60.0 $140.0 $220.0 $300.0 $380.0 $460.0 $540.0 $620.0 $700.0 $780.0 $860.0 $940.0 $1,020.0 $1,100.0 $1,180.0 $1,260.0 $1,340.0 $1,420.0 $1,500.0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 L52 WE 10-05-25 ORGANIC FRESH PACKAGED BREADS xFLO FLOWERS ORGANICS FLOWERS SHARE OF ORGANICS 16 Millions Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current data
Page 17
GLUTEN - FREE CATEGORY SALES 17 $249.0 $247.3 $261.9 $266.6 $257.3 $250.5 $96.3 $115.1 $144.0 $146.9 $154.8 $154.3 27.9 31.7 35.5 35.5 37.6 38.1 - 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0 $500.0 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 L52 WE 10-05-25 GLUTEN FREE FPB xFLO FLOWERS GF FLOWERS SHARE OF GF Millions Source: Flowers Custom Database – Circana Total US Mulo+ with Conv Due to a change in methodology and sources, data provided previously by Circana may not be comparable to current data
Page 18
INFORMATION REGARDING NON - GAAP FINANCIAL MEASURES Information Regarding Non - GAAP Financial Measures The company prepares its consolidated financial statements in accordance with U . S . Generally Accepted Accounting Principles (GAAP) . However, from time to time, the company may present in its public statements, press releases and SEC filings, non - GAAP financial measures such as, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted diluted EPS, adjusted income tax expense, adjusted selling, distribution and administrative expenses (SD&A), and gross margin excluding depreciation and amortization . The reconciliations attached provide reconciliations of the non - GAAP measures used in this presentation or release to the most comparable GAAP financial measure . The company’s definitions of these non - GAAP measures may differ from similarly titled measures used by others . These non - GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP . The company defines EBITDA as earnings before interest, taxes, depreciation and amortization . Earnings are net income . The company believes that EBITDA is a useful tool for managing the operations of its business and is an indicator of the company’s ability to incur and service indebtedness and generate free cash flow . The company also believes that EBITDA measures are commonly reported and widely used by investors and other interested parties as measures of a company’s operating performance and debt servicing ability because EBITDA measures assist in comparing performance on a consistent basis without regard to depreciation or amortization, which can vary significantly depending upon accounting methods and non - operating factors (such as historical cost) . EBITDA is also a widely - accepted financial indicator of a company’s ability to incur and service indebtedness . EBITDA should not be considered an alternative to (a) income from operations or net income (loss) as a measure of operating performance ; (b) cash flows provided by operating, investing and financing activities (as determined in accordance with GAAP) as a measure of the company’s ability to meet its cash needs ; or (c) any other indicator of performance or liquidity that has been determined in accordance with GAAP . The company defines adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted diluted EPS, adjusted income tax expense and adjusted SD&A, respectively, to exclude additional costs that the company considers important to present to investors to increase the investors’ insights about the company’s core operations . These costs include, but are not limited to, the costs of closing a plant or costs associated with acquisition - related activities, restructuring activities, certain impairment charges, legal settlements, costs to implement an enterprise resource planning system and enhance bakery digital capabilities (business process improvement costs) to provide investors direct insight into these costs, and other costs impacting past and future comparability . The company believes that these measures, when considered together with its GAAP financial results, provides management and investors with a more complete understanding of its business operating results, including underlying trends, by excluding the effects of certain charges . Adjusted EBITDA is used as the primary performance measure in the company’s 2014 Omnibus Equity and Incentive Compensation Plan (Amended and Restated Effective May 25 , 2023 ) . Presentation of gross margin includes depreciation and amortization in the materials, supplies, labor and other production costs according to GAAP . Our method of presenting gross margin excludes the depreciation and amortization components, as discussed above . The reconciliations attached provide reconciliations of the non - GAAP measures used in this presentation to the most comparable GAAP financial measure . No reconciliation of the forecasted range for adjusted EBITDA is included in this presentation because we are unable to quantify certain amounts that would be required to be included in the GAAP measure without unreasonable efforts . In addition, the company believes such reconciliation would imply a degree of precision that would be confusing or misleading to investors . For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results . 18
Page 19
RECONCILIATION OF NON - GAAP FINANCIAL MEASURES RECONCILIATION OF EARNINGS PER SHARE TO ADJUSTED DILUTED EARNING S PER SHARE NM – Not meaningful. Certain amounts may not add due to rounding 19 For the 12-Week Period Ended For the 12-Week Period Ended October 4, 2025 October 5, 2024 Net income per diluted common share 0.19$ 0.31$ Business process improvement costs NM NM Plant closure costs and impairment of assets — 0.02 Restructuring charges 0.02 — Restructuring-related implementation costs 0.01 — Acquisition and integration-related costs 0.01 — Legal settlements and related costs — NM Adjusted net income per diluted common share 0.23$ 0.33$
Page 20
RECONCILIATION OF NON - GAAP FINANCIAL MEASURES RECONCILIATION OF GROSS MARGIN EXCLUDING DEPRECIATION AND AMORTI ZATION TO GROSS MARGIN (000S OMITTED) 20 For the 12-Week Period Ended For the 12-Week Period Ended October 4, 2025 October 5, 2024 Net sales 1,226,554$ 1,190,561$ Materials, supplies, labor and other production costs (exclusive of depreciation and amortization) 638,703 598,209 Gross margin excluding depreciation and amortization 587,851 592,352 Less depreciation and amortization for production activities 21,198 20,914 Gross margin 566,653$ 571,438$ Depreciation and amortization for production activities 21,198$ 20,914$ Depreciation and amortization for selling, distribution, and administrative activities 18,675 16,417 Total depreciation and amortization 39,873$ 37,331$
Page 21
RECONCILIATION OF NON - GAAP FINANCIAL MEASURES RECONCILIATION OF SELLING, DISTRIBUTION AND ADMINISTRATIVE EXPEN SES TO ADJUSTED SD&A (000S OMITTED) 21 For the 12-Week Period Ended For the 12-Week Period Ended October 4, 2025 October 5, 2024 Selling, distribution, and administrative expenses (SD&A) 475,952$ 460,359$ Business process improvement costs (949) (490) Restructuring-related implementation costs (3,534) — Acquisition and integration-related costs (1,735) — Legal settlements and related costs — (827) Adjusted SD&A 469,734$ 459,042$ Sales 1,226,554$ 1,190,561$ Adjusted SD&A as a percent of sales 38.3% 38.6%
Page 22
RECONCILIATION OF NON - GAAP FINANCIAL MEASURES RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (000S OMITTED) 22 For the 12-Week Period Ended For the 12-Week Period Ended October 4, 2025 October 5, 2024 Net income 39,534$ 64,984$ Income tax expense 12,617 20,536 Interest expense, net 14,453 4,778 Depreciation and amortization 39,873 37,331 EBITDA 106,477 127,629 Other pension benefit (88) (119) Business process improvement costs 949 490 Plant closure costs and impairment of assets — 4,483 Restructuring charges 5,510 — Restructuring-related implementation costs 3,534 — Acquisition and integration-related costs 1,735 — Legal settlements and related costs — 827 Adjusted EBITDA 118,117$ 133,310$ Net sales 1,226,554$ 1,190,561$ Adjusted EBITDA margin 9.6% 11.2%
Page 23
RECONCILIATION OF NON - GAAP FINANCIAL MEASURES RECONCILIATION OF INCOME TAX EXPENSE TO ADJUSTED INCOME TAX EXPE NSE (000S OMITTED) 23 For the 12-Week Period Ended For the 12-Week Period Ended October 4, 2025 October 5, 2024 Income tax expense 12,617$ 20,536$ Tax impact of: Business process improvement costs 237 123 Plant closure costs and impairment of assets — 1,122 Restructuring charges 1,377 — Restructuring-related implementation costs 884 — Acquisition and integration-related costs 87 — Legal settlements and related costs — 207 Adjusted income tax expense 15,202$ 21,988$
Page 24
RECONCILIATION OF NON - GAAP FINANCIAL MEASURES RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME (000S OMITTE D) 24 For the 12-Week Period Ended For the 12-Week Period Ended October 4, 2025 October 5, 2024 Net income 39,534$ 64,984$ Business process improvement costs 712 367 Plant closure costs and impairment of assets — 3,361 Restructuring charges 4,133 — Restructuring-related implementation costs 2,650 — Acquisition and integration-related costs 1,648 — Legal settlements and related costs — 620 Adjusted net income 48,677$ 69,332$
Page 25
RECONCILIATION OF NON - GAAP FINANCIAL MEASURES RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (000S OMITTED) 25 For the 12 Weeks Ended For the 16 Weeks Ended For the 12 Weeks Ended For the 12-Week Period Ended Trailing 52 Week Period Ended December 28, 2024 April 19, 2025 July 12, 2025 October 4, 2025 October 4, 2025 Net Income 43,122$ 52,998$ 58,365$ 39,534$ 194,019$ Income tax expense 13,783 18,204 20,099 12,617 64,703 Interest expense, net 4,326 14,048 15,036 14,453 47,863 Depreciation and amortization 36,817 49,268 39,826 39,873 165,784 EBITDA 98,048 134,518 133,326 106,477 472,369 Other pension benefit 122 (117) (88) (88) (171) Acquisition and integration-related costs 2,008 13,764 871 1,735 18,378 Restructuring and related impairment charges - 573 - 5,510 6,083 Plant closure costs and impairment of assets 450 7,397 - - 7,847 Legal settlements and related costs 2,973 697 205 3,875 Business process improvement costs (1,250) 891 471 949 1,061 Restructuring-related implementation costs - 4,288 2,896 3,534 10,718 Adjusted EBITDA 102,351$ 162,011$ 137,681$ 118,117$ 520,160$
Page 26
RECONCILIATION OF NON - GAAP FINANCIAL MEASURES RECONCILIATION OF DEBT TO NET DEBT AND CALCULATION OF NET DEBT TO TRAILING TWELVE MONTH ADJUSTED EBITDA RATIO (000S OMITTED) 26 As of October 4, 2025 Current maturities of long-term debt 399,433$ Long-term debt 1,380,190 Total debt 1,779,623 Less: Cash and cash equivalents 16,731 Net Debt 1,762,892$ Adjusted EBITDA for the Trailing Twelve Months Ended October 4, 2025 520,160$ Ratio of Net Debt to Trailing Twelve Month Adjusted EBITDA 3.4
Page 27
RECONCILIATION OF NON - GAAP FINANCIAL MEASURES RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (000S OMITTED) 27 For the 52-Week Period Ended For the 52-Week Period Ended December 28, 2024 December 30, 2023 Net income 248,116$ 123,416$ Income tax expense 80,826 33,691 Interest expense, net 19,623 16,032 Depreciation and amortization 159,210 151,709 EBITDA 507,775 324,848 Other pension benefit (273) (269) Business process improvement costs (recoveries) 4,529 21,521 Plant closure costs and impairment of assets 10,310 7,298 Restructuring charges 7,403 7,099 Restructuring-related implementation costs 2,979 — Acquisition-related costs 2,008 3,712 Legal settlements and related costs 3,800 137,529 Adjusted EBITDA 538,531$ 501,738$ Net sales 5,103,487$ 5,090,830$ Adjusted EBITDA margin 10.6% 9.9%
Page 28
RECONCILIATION OF NON - GAAP FINANCIAL MEASURES RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA (000S OMITTED) 28 For the Fiscal Year Ended For the Fiscal Year Ended For the Fiscal Year Ended For the Fiscal Year Ended For the Fiscal Year Ended December 30, 2023 December 31, 2022 January 1, 2022 January 2, 2021 December 28, 2019 Net Income 123,416$ 228,394$ 206,187$ 152,318$ 164,538$ Income tax expense 33,691 70,317 64,585 48,393 47,545 Interest expense, net 16,032 5,277 8,001 12,094 11,097 Loss on extinguishment of debt - - 16,149 - - Depreciation and amortization 151,709 141,957 136,559 141,384 144,228 EBITDA 324,848 445,945 431,481 354,189 367,408 Other pension (benefit) cost (269) (773) (405) (74) 2,248 Pension plan settlement and curtailment loss - - 403 108,757 - Gain on divestiture - - - - - Gain on sale, severance costs, and lease termination (gain) loss - (4,390) (2,644) (4,066) - Acquisition-related costs 3,712 12,518 - - 22 FASTER Act and loss (recovery) on inferior ingredients - 236 944 107 (37) Project Centennial consulting costs - - - 15,548 784 ERP road mapping consulting costs - - - 4,363 - Restructuring and related impairment charges 7,099 - - 35,483 23,524 Multi-employer pension plan withdrawal costs - - 3,300 - - Plant closure costs and impairment of assets 7,298 7,825 - - - Legal settlements and related costs 137,529 7,500 23,089 7,250 28,014 Other pension plan termination costs - - - 133 - Executive retirement agreement - - - - 763 Business process improvement consulting costs 21,521 33,169 31,293 - - Acquisition consideration agreement - - 3,400 - - Manufacturing facility closure costs and acquisition costs - - - - - Adjusted EBITDA 501,738$ 502,030$ 490,861$ 521,690$ 422,726$
Page 29
RECONCILIATION OF NON - GAAP FINANCIAL MEASURES RECONCILIATION OF EARNINGS PER SHARE TO ADJUSTED EARNINGS PER SH ARE 29 Certain amounts may not add due to rounding. For the Fiscal Year Ended For the Fiscal Year Ended For the Fiscal Year Ended For the Fiscal Year Ended For the Fiscal Year Ended For the Fiscal Year Ended December 28, 2024 December 30, 2023 December 31, 2022 January 1, 2022 January 2, 2021 December 28, 2019 Net income per diluted common share 1.17$ 0.58$ 1.07$ 0.97$ 0.72$ 0.78$ Restructuring and related impairment charges 0.03 0.02 - - 0.13 0.08 FASTER Act, net of (recovery) loss on inferior ingredients - - - - - - Project Centennial consulting costs - - - - 0.05 - ERP road mapping consulting costs - - - - 0.02 - Multi-employer pension plan withdrawal costs - - - 0.01 - - Plant closure costs and impairment of assets 0.04 0.03 0.03 - - - Pension plan settlement and curtailment loss - - - - 0.38 - Legal settlements and related costs 0.01 - 0.03 0.08 0.03 0.10 Gain on sale, severance costs, and lease termination (gain) loss - 0.48 (0.02) (0.01) (0.01) - Loss on extinguishment of debt - - - 0.06 - - Acquisition-related costs 0.01 0.01 0.04 - - - Business process improvement costs 0.02 0.08 0.12 0.11 - - Acquisition consideration adjustment - - - 0.01 - - Restructuring-related implementation costs 0.01 - - - - - Adjusted net income per diluted common share 1.28$ 1.20$ 1.27$ 1.24$ 1.31$ 0.96$
Page 30
RECONCILIATION OF NON - GAAP FINANCIAL MEASURES RECONCILIATION OF EARNINGS PER SHARE - FULL YEAR FISCAL 2025 GUI DANCE RANGE ESTIMATE 30 NM – Not meaningful. Certain amounts may not add due to rounding. Net income per diluted common share 0.85$ to 0.91$ Business process improvement costs 0.01 0.01 Plant closure costs and impairment of assets 0.03 0.03 Restructuring charges 0.02 0.02 Restructuring-related implementation costs 0.04 0.04 Acquisition-related costs 0.07 0.07 Legal settlements and related costs NM NM Adjusted net income per diluted common share 1.02$ to 1.08$ Range Estimate